Nordstrom 2007 Annual Report Download - page 20

12
Item 3. Legal Proceedings.
(Dollars in millions)
COSMETICS
We were originally named as a defendant along with other department store and specialty retailers in nine separate but virtually identical class action
lawsuits filed in various Superior Courts of the State of California in May, June and July 1998 that were consolidated in Marin County Superior Court. In
May 2000, plaintiffs filed an amended complaint naming a number of manufacturers of cosmetics and fragrances and two other retailers as additional
defendants. Plaintiffs’ amended complaint alleged that the retail price of the “prestige” or “Department Store” cosmetics and fragrances sold in
department and specialty stores was collusively controlled by the retailer and manufacturer defendants in violation of the Cartwright Act and the
California Unfair Competition Act.
Plaintiffs sought treble damages and restitution in an unspecified amount, attorneys’ fees and prejudgment interest, on behalf of a class of all
California residents who purchased cosmetics and fragrances for personal use from any of the defendants during the four years prior to the filing of
the original complaints.
While we believe that the plaintiffs’ claims are without merit, we entered into a settlement agreement with the plaintiffs and the other defendants on
July 13, 2003 in order to avoid the cost and distraction of protracted litigation. In furtherance of the settlement agreement, the case was re-filed in the
United States District Court for the Northern District of California on behalf of a class of all persons who currently reside in the United States and who
purchased “Department Store” cosmetics and fragrances from the defendants during the period May 29, 1994 through July 16, 2003. The Court gave
preliminary approval to the settlement, and a summary notice of class certification and the terms of the settlement was disseminated to class
members. On March 30, 2005, the Court entered a final judgment approving the settlement and dismissing the plaintiffs’ claims and the claims of all
class members with prejudice, in their entirety. On April 29, 2005, two class members who had objected to the settlement filed notices of appeal from
the Court’s final judgment to the United States Court of Appeals for the Ninth Circuit. The Ninth Circuit issued its decision on August 23, 2007, affirming
the District Courts’ ruling and the settlement became final according to its terms on November 22, 2007. Pursuant to the settlement, the defendants
will provide class members with certain free products with an estimated retail value of $175 and pay the plaintiffs’ attorneys’ fees, awarded by the
Court, of $24. We have paid approximately $1 for our allocated portion of both the costs of the free products to class members and the attorneys’ fees.
OTHER
We are involved in routine claims, proceedings and litigation arising from the normal course of our business. We do not believe any such claim,
proceeding or litigation, either alone or in aggregate, will have a material impact on our financial condition, results of operations or cash flows.
Item 4. Submission of Matters to a Vote of Security Holders.
None.
PART II
Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of
Equity Securities.
MARKET, SHAREHOLDER AND DIVIDEND INFORMATION
Our common stock, without par value, is traded on the New York Stock Exchange under the symbol “JWN.” The approximate number of holders
of common stock as of March 12, 2008 was 166,390, based upon the number of registered and beneficial shareholders, as well as the number of
employee shareholders in the Nordstrom 401(k) Plan and Profit Sharing Plan.
The high and low sales prices of our common stock and dividends declared for each quarter of 2007 and 2006 are presented in the table below:
Common Stock Price
2007 2006 Dividends per Share
High Low High Low 2007 2006
1st Quarter $59.70 $49.35 $42.90 $37.51 $0.135 $0.105
2nd Quarter $56.00 $42.70 $39.50 $31.77 $0.135 $0.105
3rd Quarter $53.47 $36.12 $49.52 $32.97 $0.135 $0.105
4th Quarter $39.95 $28.00 $57.10 $45.37 $0.135 $0.105
Full Year $59.70 $28.00 $57.10 $31.77 $0.54 $0.42